How does the JHEM ETF work?
3 min read
By Ron Koren, ETF Insider

How does the JHEM ETF work?

JHEM ETF: Overview

The JHEM ETF, officially known as the [ETF NAME], is an investment product managed by [Issuer Name]. Launched in [Year of Launch], this exchange-traded fund offers investors exposure to a diversified portfolio of securities associated with emerging markets, including frontier markets. [Issuer Name] has developed and maintained the fund's underlying index, which utilizes a multifactor investing approach to select and weight securities within eligible countries.

JHEM ETF Underlying and Exposure: What Does It Track and How?

The JHEM ETF primarily invests at least 80% of its net assets in securities included in the fund's proprietary index. This index is designed to capture a subset of securities from emerging markets, considering factors such as market capitalization, relative price, and profitability. [Issuer Name] employs a rules-based process, often referred to as strategic beta or smart beta, to determine the weightings of individual securities. This approach aims to increase the weights of smaller market capitalizations and securities with lower relative prices and higher profitability within the eligible universe.

JHEM overlap How does work the JHEM ETF?JHEM overlap How does work the JHEM ETF?

JHEM ETF: Benefits of Investing in This ETF

Investors consider the JHEM ETF as an attractive option for exposure to emerging markets due to its systematic approach to selecting securities. By investing in this ETF, individuals can benefit from the potential growth opportunities presented by emerging and frontier markets while maintaining a diversified portfolio. The multifactor investing strategy employed by [Issuer Name] aims to enhance returns and manage risks in these markets.

JHEM ETF: Considerations Before Investing

Before investing in the JHEM ETF, it's important for investors to assess their risk tolerance, investment goals, and time horizon. Emerging markets can be volatile, and the fund's performance is subject to market fluctuations. Additionally, investors should review the fund's prospectus and understand the specific countries and sectors it is concentrated in.

Conclusion

In conclusion, the JHEM ETF, managed by [Issuer Name], provides a systematic and diversified approach to investing in emerging and frontier markets. By understanding its underlying index construction and considering individual investment objectives, investors can make informed decisions about whether this ETF aligns with their portfolio strategies.

Disclaimer: This article is for informational purposes only and does not constitute investment advisory services. Investors should conduct their own research and consult with financial professionals before making investment decisions.

JHEM ETF issuer
JHEM ETF official page

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FAQ

  • What is the JHEM ETF?

    The JHEM ETF is an exchange-traded fund that provides investors with exposure to a specific sector.

  • What is the underlying index that the JHEM ETF aims to track?

    The JHEM ETF aims to track the performance of a specific index, which includes companies involved in its respective sector.

  • What types of companies are included in the JHEM ETF?

    The JHEM ETF includes companies from its focused industry.

  • How does the JHEM ETF work?

    The JHEM ETF functions by pooling investors' capital to purchase a diversified portfolio of sector-related stocks.

  • What are the advantages of investing in the JHEM ETF?

    Investing in the JHEM ETF offers exposure to a specialized sector with potential for growth.